Cash Flow and COCR benchmarks

[Dustin Somers]

When evaluating potential investment properties. What are your target number that make you say yes or no ?

Min cash flow ? Must have a COC of ? I now we can't just draw a line because each property is different but does anyone have a hard No or rule of thumb

I search for multi family duplex, Tri, and Quad in the range of 200-700k

Thank you In advance

Dustin

[Chico Ford]

@Dustin Somers I remember when I was asking myself this same question as I was starting out as an investor.  I would like to come at my response from a different angle than others.  I was listening to Brandon Turner a lot on the BP Podcast and he would often say analyze 1 deal a day to understand your market and how all of the math works.  When you get to 30, 40 or 50 deals analyzed you will know what makes a great deal and which metrics matter in decision making.  To me they all matter, as someone else said it's more about the relationship of the metrics to one another that really paints the picture on the purchase decision.  Set a goal to analyze 1 or event 2 deals per day for the next 30 to 45 days.  If you stick to that goal and use the BP calculators, you will know which deals are good and which deals are bad from a math perspective.  Then balance your decision between the math and the other factors (location, management, tenant quality, capital reserves, etc....) when making your purchase decision. All the Best!